How To Price A Product For Retail?

  • 2nd Dec'20
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One of the secrets to business accomplishment is pricing your products suitably. Price your products correctly, and that can direct how much you sell, developing the establishment for a business that will grow. Getting an improper pricing strategy, and you may face difficulties that your business may never be able to overcome.

 

 

Product Pricing Strategies

 

Product Pricing Strategies

Price is the significance that is put to a product or service and is the outcome of a complex set of calculations, research, awareness, and risk-taking ability.

There are four basic techniques and strategies, differences of which are used in the industry:

  • Premium pricing: The high price is used as a defining standard. Such pricing strategies work in segments and industries where a crucial competitive advantage arises for the company.  
  • Penetration pricing: The price is fixed artificially low to increase market share instantly. This occurs when a new product is being introduced or launched.
  • Economy pricing: It is no-frills pricing. Margins are wafer narrow, overheads like marketing and advertising prices are very low and target the mass market and high market stake.
  • Skimming strategy: The high price is charged for a product till such time as competitors enable, after which costs can be lowered.

 

To know more about the different pricing strategies in the market, refer to the given below articles: 

5 Common Strategies to consider your price of products:

Determining a product price just not rely on cost, here are the common strategies to consider for deciding price. Read more.

Product pricing and techniques:

Most critical and brainstorming process to decide a reasonable price for your product. Get to know what techniques can be decisive. Read more.

Pricing strategies to build your market positioning:

Pricing strategy is based on the ground on the demand behaviour of competitors products. Read more.

 

MUST READ : B2B Marketplaces will be the Next Billion-Dollar e-Commerce Startups 

 

Product Pricing

 

Product Pricing Methods

An organization has various alternatives for selecting a pricing method. Prices are based on three catalysts that are cost, demand, and competition. The organization can use any of the combinations of dimensions to set the price of a product.

The different pricing methods are given below: 

Cost-based pricing directs to a pricing method in which a few percentages of desired profit margins are calculated to the cost of the product to attain the final price.  

Demand-based pricing implies a pricing method in which the price of a product is confirmed according to its demand.  

Competition-based pricing denotes to a method in which an organization considers the prices of an opponent's or competitors' products.

 

To know more about the different pricing methods used in the market, Refer to these articles given below: 

Product Pricing Method

Easiest ways to do pricing strategies. Read more.

Cost-Oriented Method and Market-Oriented Method

There are various methods of pricing products in the market. While choosing the appropriate method of fixing prices, a marketer must evaluate and approach the factors affecting pricing. Read more.

 

We at OpenGrowth, Recommend you all the tactics and strategies to sustain in the current market.

 

About the Author: Beauty Kumari 

An eloquent individual, love to express a myriad of topics through her words. She is ready to take any professional challenge head-on and give her best to any project entrusted to her. She wants to adversely impact through her writing and build a career out of her passion.

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About the author:

Isha Panwar, OpenGrowth Content Team

 

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